The U.S. natural gas market is starting its 2015-16 winter season with a whopping 3,929 Bcf in storage, equal to the record maximum level set Nov. 2, 2012. Meanwhile gas production is also well above last year. Given these conditions, the market will need record demand to absorb incremental production and work off the surplus in storage. But weather forecasts so far are pointing toward a delayed start to winter heating demand. The price of natural gas has sagged under the pressure with the prompt CME/NYMEX Henry Hub futures contract treading at a price less than half this time last year. And, now, a number of operational factors and constraints are set to kick in for the winter that could further disrupt an oversupplied market. In today’s blog, we look at the storage and transportation dynamics that could factor into how the market balances this winter.
To access the remainder of A Hazy Shade Of Winter – Storage Surplus Threatens Winter Natural Gas Prices Part 2 you must be logged as a RBN Backstage Pass™ subscriber.
Full access to the RBN Energy blog archive which includes any posting more than 5 days old is available only to RBN Backstage Pass™ subscribers. In addition to blog archive access, RBN Backstage Pass™ resources include Drill-Down Reports, Spotlight Reports, Spotcheck Indicators, Market Fundamentals Webcasts, Get-Togethers and more. If you have already purchased a subscription, be sure you are logged in For additional help or information, contact us at email@example.com or 888-613-8874.